Company Registration No. 09662303 (England and Wales)
VENN ACADEMY TRUST
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2017 VENN ACADEMY TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees Mr T Johnson (Chair of Trustees) Mr V Blake-Barnard Mr C Fenwick Mr M McAlindon Mr S Witham (Chief Executive Principal and Accounting Officer) Mrs C Patton (Headteacher) Mr P Wilson (Vice Chair)
Members Mr T Burnside Mr C Fenwick Mr M McAlindon Mrs B Welbourn Mr M Dickinson
Senior management team - Chief Executive Principal and Accounting Mr S Witham Officer - Headteacher PRU's / Special School Mrs C Patton
Company registration number 09662303 (England and Wales)
Registered office Bridgeview Whitehouse Sullivan Centre Pickering Road Hull HU47AD
Academies operated Location Principal Thorpepark Acedemy Kingston Upon Hull Caroline Knight Bridgeview Special School Kingston Upon Hull Claire Patton Sullivan Centre Kingston Upon Hull Claire Patton Whitehouse Kingston Upon Hull Claire Patton Mountbatten Primary School Kingston Upon Hull Lisa Traynor Boulevard Centre Kingston Upon Hull Jacqui Thompson Griffin Primary School Kingston Upon Hull Juliette Garmston
Independent auditor RSM UK Audit LLP Two Humber Quays Wellington Street West Hull HU12BN
Bankers Lloyds Bank pic 25 Gresham Street London EC2V 7HN
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REFERENCE AND ADMINISTRATIVE DETAILS
Solicitors Browne Jacobson LLP Mowbray House Castle Meadow Road Nottingham NG2 1 BJ
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TRUSTEES'REPORT
The trustees present their annual report together with the financial statements and auditor's report of the charitable company for the period 1 September 2016 to 31 August 2017. The annual report serves the purposes of both a trustees' report, and a directors' report under company law.
The Trust opened on 1 September 2015 with four converting Academies, being Thorpepark Academy, Bridgeview Special School, Whitehouse Pupil Referral Unit and The Sullivan Centre (a medical pupil referral unit). During the year the Trust has grown to include a number of additional converter academies, these are governed by Venn Academy Trust. The Boulevard Centre (School Girl Mums) joined the Trust on 1 September 2016. Griffin Primary School and Mountbatten Primary School both joined in June and July 2017 respectively and are both mainstream primary schools.
The Academy Trust operates 3 Primary Academies, 1 Primary Special School and 3 Alternative Provision Pupil Referral Units in Kingston upon Hull during 2016/17. It has a pupil net capacity of: Thorpepark Academy 540, Mountbatten Primary School 300, Griffin Primary School 496, the Alternative Provision PRU's have a capacity for which the school is organised to make provision of: Bridgeview Special School 35, Whitehouse PRU 30, Sullivan Centre 25, Boulevard Centre 40. The total number on roll in January 2017 was Thorpepark Academy 526, Mountbatten Primary School 253, Griffin Primary School 480, Bridgeview Special School 43, Sullivan Centre 11, Whitehouse PRU 28, Boulevard Centre 20.
STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution The Academy Trust is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the Academy Trust.
The Multi-academy Trust ("the Trust") is known as the Venn Academy Trust and the settings are known as Thorpepark Academy, Bridgeview Special School, Whitehouse PRU, The Sullivan Centre, The Boulevard Centre, Griffin Primary School and Mountbatten Primary School.
The trustees of Venn Academy Trust are also the directors of the charitable company for the purposes of company law. Details of the trustees who served during the year are included in the Reference and Administrative Details on page 1.
Members' liability Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.
Trustees' indemnities Subject to the provisions of the Companies Act 2006, every Trustee of the Trust shall be identified out of the assets of the Trust against any liability incurred by them in that capacity in defending any proceedings, whether civil or criminal, in which judgement is given in favour or in which they are acquitted or in connection with any application in which relief is granted to him by the court from liability for negligence, default, breach of duty or trust in relation to the affairs of the Trust.
A Trustee may benefit from any indemnity insurance purchased at the Academy Trust's expense to cover the liability of Trust which by virtue of any law would otherwise attach to them. This is in respect of any negligence, default or break of trust or duty of which they may be guilty in relation to the Academy Trust (RPA Governors Liability Expense). The insurance provides cover up to £10,000,000 for anyone loss and anyone-membership period.
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TRUSTEES' REPORT (CONTINUED)
Method of recruitment and appointment or election of trustees The Trust has a total of seven Trustees as shown on page 1. This includes the Chief Executive (Accounting Officer and the Chair of the Local Governing Body of Thorpepark Academy). New Trustees are appointed by the Members. When new Trustees or Governors are appointed, the Members and Board of Trustees approves at that time an appropriate process and criteria for recruitment based on an analysis of the current skill and capability requirements of the Board or Governing Body, the current needs of each academy and governance good practice at Trust level.
Each academy has retained its own Local Governing Body (LGB), however Bridgeview Special School, Whitehouse PRU, Sullivan Centre share one LGB with discreet agenda items that are school specific as necessary.
Policies and procedures adopted for the induction and training of trustees All Trustees and Governors are provided with copies of the OfE Governors' Handbook on appointment. When new Trustees or Governors are appointed, an analysis of the requirements of their role and their current skills determines their induction process. The induction process is outlined in the Governance Handbook. Effective governance is critical to the success of the Trust and its schools. The Trust also has a formal induction policy for new Trustees and Governors.
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TRUSTEES' REPORT (CONTINUED)
Organisational structure During the period the organisational structure of the Trust consisted of 3 levels: the Trust Members, the Board of Trustees and the Local Governing Bodies. The Local Governing Bodies have committees where required and the Trust has an Audit and Risk committee. It is further supported by the Venn Senior Leadership Board. The central services has developed to include the a new Finance Director (who is the Chief Financial Officer), a senior HR Business Partner and is reviewing clerking and administrative support staff.
The Board of Trustees of the Trust shall hold a minimum of four meetings in every school period, including the annual general meeting (AGM).
The role of the Trust is:
• To be ultimately accountable and responsible for all decisions regarding the strategic running of the MAT and the individual schools within it; • To have oversight of the curriculum, standards, progress and outcomes across the trust and the individual schools; • To have oversight of finances and risk management of the trust and the individual schools.
The role of each LGB is to:
• Ensure clarity of vision, ethos and strategic direction at each school; • Hold Headteachers to account for the educational performance of the school and its pupils, and the performance management of staff; • Oversee the financial performance of the school and making sure its money is well spent; • Advise the Board as required.
The Scheme of Delegation framework sets out the responsibilities of the key roles in relation to each school within the Trust and is reviewed annually. In July 2017 the scheme of delegation was developed to distinguish further between supported and unsupported schools.
The Board of Trustees are able to delegate identified functions to any Trustee, committee (including any Local Governing Body), or any other holder of an executive office, to the extent of power or function which they consider desirable to be exercised by them. Any such delegation shall be made subject to any conditions the Trustees may impose, and may be revoked or altered. The Trustees shall appoint Headteachers of the participating schools. The Trustees may delegate such powers and functions as they consider are required to the Chief Executive Officer and the Headteachers for the internal organisation, management and control of the Schools (including the implementation of all policies approved by the Trustees and for the direction of the teaching and curriculum at the Schools).
The Board of Trustees are responsible for ensuring that high standards of corporate governance are maintained. It should exercise its powers and functions with a view to fulfilling a largely strategic leadership role in the running of the schools within the Trust.
The Local Governing Body is able to delegate identified functions to a committee; where decisions have been delegated these must be reported back to the next Local Governing Body meeting. It is essential that the Local Governing Body delegate sufficient powers to the Headteacher so that they can manage the school effectively.
The Board I Local Governing Body delegates general responsibility to incur financial commitments and expenditure in accordance with the approved budget plan and financial regulations.
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TRUSTEES' REPORT (CONTINUED)
Arrangements for setting pay and remuneration of key management personnel Venn Academy Trust has a senior leadership pay scale applicable for the Chief Executive Officer, Deputy Chief Executive and Executive Headteachers (who are not key management personnel). The pay scale was set up to reflect the level of responsibility of the post holders with reference to the School Teachers Pay and Conditions Policy with respect to the Senior Leadership Pay Scale. The pay scale is reviewed and endorsed annually by the Trust Board.
Pay for the CEO is reviewed annually following a performance management review completed by an external reviewer and two-performance management Trustees. A recommendation on the annual pay award is made to the Trust Board based on evidence of performance targets met and guidance from the external reviewer. The annual pay award for executive leaders results from a performance management review of targets met with a recommendation to the Trust Board.
Major risks for the Trust The major risks and uncertainties identified include national changes and possible reductions in funding for alternative provision in respect of the Trust's Pupil Referral Units, uncertainty on national changes to High Needs Funding, post-opening management of academies joining the Trust, future changes to nursery funding, providing facilities to meet demand and delays to Euler opening due to site delays.
Related parties and co-operation with other organisations Venn Academy Trust works with Tidal Teaching School Alliance. Tidal's core belief is the capacity to improve schools ties within schools. Tidal Teaching School Alliance taps into that potential using audits of need and up to date research to train the next generation of teachers through School Direct and the SCITT. Effective practice in schools is achieved by responding to identified needs and supporting the measures necessary to transform those needs into daily practice.
The Local Authority in Hull and the Trust works in partnership to offer school to school support in reference to pupils who have behavioural issues, or who are at risk of or have been permanently excluded. Additionally it provides educational provision for pupils with SEMH who have an EHCP: Pupils who are ill, pregnant, or who are vulnerable access education via Venn's range of settings. The local authority commissions places via the PRUs and through the Whitehouse Outreach service.
Venn is an accredited Team Teach provider working with other schools to provide Team Teach de-escalation training for adults working in schools. In addition, Venn has written Leading 4 Learning, a course aimed at reducing low-level disruption in school classrooms.
Catchment area The catchment area for Bridgeview Special School, Sullivan Centre, Whitehouse pupil referral unit and the Boulevard Centre is city wide and also extends into the neighbouring local authorities. The catchment area for Thorpepark Academy, Griffin Primary School and Mountbatten Primary School are based on the areas around the school as defined by Kingston Upon Hull City Council Primary School Admissions Policy.
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TRUSTEES' REPORT (CONTINUED)
OBJECTIVES AND ACTIVITIES Principal activities
In accordance with our articles of association the charitable company has entered into a Master Funding Agreement approved by the Secretary of State. The Master Funding Agreement specifies, amongst other things, the basis for admitting pupils to the academies, the catchment areas from which pupils are drawn and that the curriculum should be broad and balanced and relevant to the needs of all our learners.
The principal object and activity of the charitable company is the operation of Venn Academy Trust to advance, for the public benefit, education for pupils of different abilities between the ages of 3-19.
Venn Academy Trust Vision and aims:
The communities the Trust serves are wide reaching and range from local stakeholders in the Humber region to children and families choosing to join (commissioned places) from further afield. As a proposed sponsor we recognise our strength is based on our leadership model, and with staff who can support effective learning behaviour within settings. We currently aim to work within a 50 mile / 1 hour radius of our central base in Hull.
The Trust proposes to maximise the freedoms that academy status offers developing a curriculum that meets the needs of pupils and being relentless in making sure every child succeeds. The current schools have a proven track record in doing so and a curriculum model which delivers to mainstream and alternative provision. We have high ambitions for our pupils. Additionally the Trust has access to Tidal Teaching School Alliance deploying their SLEs to improve outcomes.
The Trust has a defined approach to teaching and learning developing appropriate learning behaviour to secure progress, the aim is to relentlessly promote outstanding leadership and teaching. The Trust will use data to inform curriculum planning, using research to inform practice ensuring evidence based practice impacts on outcomes.
Dependent on the location and size of these schools we would work in two or three clusters ensuring good and outstanding schools are in each cluster working closely with those who require improvement and intervention.
Currently we have 7 academies in our trust. The Trust has an application for a Free School Alternative Provision Pupil Referral Unit at pre-opening phase. The Trust is looking to develop 2 regional hubs to support the balance and capacity required to support each other adding the challenge and rigour required to ensure all schools become or remain outstanding.
Members of the executive leadership team and senior leaders meet regularly to review the progress and standards of each school to share self-evaluation, performance data and work towards developing school improvement. Good practice is disseminated to ensure all leaders are ambitious in communicating the vision of Venn Academy Trust. Any risks that are identified are discussed though the appropriate committees such as the Risk Management Committee, LGB or Board.
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TRUSTEES' REPORT (CONTINUED)
Public benefit The trustees have complied with their duty under section 4 of the Charities Act 2006 to have due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers and duties.
North Yorkshire
The Trust is currently providing school-to-school support to a primary school in North Yorkshire.
Euler Academy
Early in 2017 the Trust received approval from the DfE to move forward to the pre-opening stage for our Alternative Provision free school, Euler Academy. We hope to open the new school and its facilities during 2019 with an exact date to be confirmed. Regular communication is taking place between the DFE, Claire Patton and Gail Khan (Project Manager). Our admission policy for a 56-place provision has been registered. The Trust has held working party meetings to discuss communication and curriculum and we have received confirmation that the DFE are in discussions with Hull City Council regarding the site for Euler Academy. Until Heads of Terms are agreed we cannot progress with statutory consultation and recruitment, neither can we draw down DfE funding for the pre-opening phase.
The Trust has development of staff at its core and provides bespoke training and support in the city for a range of contexts.
Research
The Trust uses action and evidence based research to lead training and development of staff across the Trust and city. It is currently involved in researching reading with the University of East London and the United Kingdom Literacy Association. Additionally the trust has developed CPD to promote leading behaviour for learning.
Other schools
The Trust can evidence the impact it has had on schools across the city for learning behaviour and through its outreach facility. The trust works with the local authority and Fair Access Panels to support hard to reach and vulnerable pupils.
STRATEGIC REPORT Financial review The Trust's main source of income is from the Education and Skills Funding Agency (ESFA) in the form of GAG (General Annual Grant) payments based on the School Funding Formula. These grants and the associated expenditure are shown in the Restricted Funds in the Statement of Financial Activities.
The Trust also receives grants for capital expenditure and these grants are shown in the Statement of Financial Activities as restricted income in the fixed assets fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the asset.
During 2016-17 the Trust required each academy to contribute 5% of its GAG and other relevant income to the central services operations, with the funding used to provide centralised support services.
During the period ending 31 August 2017 total income, excluding funds received on conversion and fixed asset fund income, was £6,824,190 (2016: £4,967,739), and total expenditure, excluding depreciation was £6,476,881 (2016: £4,417,862). The total surplus across the Trust, with income being greater than expenditure, (and excluding amounts on conversion, restricted fixed asset funds and accounting for the pension scheme actuarial valuation and charge), was £347,309 (2016: £549,877).
At 31 August 2017 the net book value of fixed assets was £23,080,465 (2016: £10,760,432).
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TRUSTEES' REPORT (CONTINUED)
Financial and risk management objectives and policies The Trust has cash, bank balances and trade creditors and is not exposed to financial risks from credit as the Trust does not undertake any borrowing as all its operating needs are met from within its cash resources. Therefore the trust is not exposed to interest rate risk. The level of balances currently held is sufficient for the risk of insufficient cash liquidity to be considered minimal. The trust is exposed to price risks and future inflation, but is funded primarily from the government and therefore the credit risk is considered to be minimal.
Reserves policy The Trust held total fund balance reserves of £22,418,827 as at 31 August 2017 (2016: £10,151,462), comprising of £21,235,389 (2016: £9,550,219) of restricted funds including a pension deficit of £2,944,000 (2016: £1,765,000) and unrestricted funds of £1,183,438 (2016: £601,243).
Total revenue reserves of the Trust are £2,282,362 (2016: £1,156,030) as at 31 August, and this excludes the fixed asset fund of £23,080,465 (2016: £10,760,432) and the pension reserve deficit of £2,944,000 (2016: £1,765,000). The amount of free funds, being total funds less the amount held in fixed assets and restricted funds is £2,282,362 (2016: £1,156,030). This amount is approximately equal to four months' total salary expenditure and the Trustees consider that this is adequate and reasonable to meet the operational and working capital needs of the Trust.
The trust is carrying a net deficit of £2,944,000 (2016: £1,765,000) on the pension reserve deficit due to future pension liabilities exceeded the current value of assets held. Over time this will be brought back into balance through the payment of monthly pension contributions, based on a percentage of gross salaries, into the East Riding Pension Fund which includes an element to address the deficit position.
The Trust has a Reserves Policy to protect its activities by providing a financial comfort zone of £2.3m to provide for an unpredictable future financial environment and to make sufficient provision for future cash flow requirements and capital procurement. Given the growth of the Trust the management of reserves will be reviewed annually.
Investment policy The Trust has an Investment Policy which is geared towards avoiding risk rather than maximising a financial return. The trust operates an interest bearing current account. The directors have the power to invest monies surplus to the trust's working requirements in a higher interest bearing account operated by an approved institution. The trust does not currently hold any higher interest investment accounts.
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TRUSTEES' REPORT (CONTINUED)
Achievements and performance Set out below are the key performance indicators and achievements met during the period by the Trust: 1. The mainstream primary academy met government floor standards. 2. Prior to conversion, all schools across the Trust are graded at least 'Good' by Ofsted with the exception of Mountbatten Primary School and Griffin Primary School (both RI) 3. Governance and training conferences, to support high quality teaching, learning and governance, are ongoing. 4. Trust wide policies are being embedded with the master policy schedule under review. This will be fully in place by February 2018. 5. CPO is fully embedded to support outcomes for pupils and is trust wide.
The following were achieved by August 2017: Bridgeview Special School All children in Bridgeview Special School have EHCP's. We can evidence that all of these children make progress in line with their personal targets i.e. in behaviour and learning.
Bridgeview Special School Pupil Progress and Comparisons of data (including Pupil Premium to non Pupil Premium) • There were 50 pupils attending the Bridgeview Special School during the academic year. • Average attendance was 90.3% in Bridgeview Special School. • Maths average steps progress was 1.5 steps per term (2 steps is expected progress per term) • Reading average steps progress was 2.1 steps per term (2 steps is expected progress per term) • Writing average steps progress was 1.7 steps per terms (2 steps is expected progress per term) • 36 pupils received Pupil Premium funding and of these 10 were looked after Attendance: Whilst attending Bridgeview Special School, pupil premium pupils, on average attended 90.5% whereas their non pupil premium peers attended 89.7%.
Maths: Pupils attending Bridgeview Special School made on average 1.45 steps progress per term in maths. Pupil premium make on average 1.5 steps progress per term in maths compared to the non pupil premium pupils achieving an average on 1.12 steps progress per term.
SATs: Out of 10 year 6 pupils, 9 were entered in to their maths SATs. 5 pupils met their FFT targets for maths.
Reading: Pupils attending Bridgeview Special School made on average 2.06 steps progress per term in reading. Pupil premium made on average 2.16 steps progress per term in reading compared to the non-pupil premium pupils achieving an average on 1.73 steps progress per term.
SATs: Out of 10 year 6 pupils, 9 were entered into their reading SATs, 3 pupils achieved their age related expectations. 8 pupils met or exceeded their FFT targets for reading.
Writing: Pupils attending Bridgeview made on average 1.66 steps progress per term in writing. Pupil premium pupils made on average 1.73 steps progress per term and non pupil premium pupils achieved on average 1.42 steps progress per term.
SATs: Out of 10 year 6 pupils, 9 were entered into their English GPS SATs, 1 pupil achieved their age related expectations. 8 pupils met their FFT targets for GPS.
Whitehouse Whitehouse progress is measured by looking at how many children on placements return to mainstream. In 2016/17, 52% of pupils transitioned to mainstream or next setting. For those who do not return to mainstream they often need statutory assessment they move to special schools. All children who access Whitehouse make academic progress in their learning and behaviour during their placement.
Whitehouse Pupil Progress and Comparisons of data (including Pupil Premium to non Pupil Premium) • There were 44 pupils attending the Whitehouse during the academic year. • Average attendance was 85.9% in Whitehouse. • Maths average steps progress was 1.58 steps per term (2 steps is expected progress per term) • Reading average steps progress was 1.9 steps per term (2 steps is expected progress per term) • Writing average steps progress was 1.3 steps per terms (2 steps is expected progress per term) • 30 pupils received Pupil Premium funding and of these 4 were looked after.
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TRUSTEES' REPORT (CONTINUED)
Maths: Pupils attending Whitehouse made on average 1.58 steps progress per term in maths. Pupil premium pupils made on average 1.57 steps progress per term in maths compared to the non pupil premium pupils achieving an average of 1.61 steps progress per term.
SATs: Out of 8 year 6 pupils, all 8 were entered into their maths SATs, 1 pupil was absent on the day of the exam, 3 pupils achieved their age related expectations. 4 pupils met or exceeded their FFT targets for maths.
Reading: Pupils attending Whitehouse made on average 1.9 steps progress per term in reading. Pupil premium pupils made on average 1.88 steps progress per term in reading compared to the non-pupil premium pupils achieving an average of 2 steps progress per term.
SATs: Out of 8 year 6 pupils, all 8 were entered into their reading SATs, 2 pupils were absent on the day of the exam,2 pupils achieved their age related expectations. 3 pupils met or exceeded their FFT targets for reading.
Writing: Pupils attending Whitehouse made on average 1.3 steps progress per term in writing. Pupil premium pupils made on average 1.32 steps progress per term in reading compared to the non-pupil premium pupils achieving an average of 1.37 steps progress per term.
SATs: Out of 8 year 6 pupils, 7 were entered into their English GPS SATs, 1 pupil was absent on the day of the exam, 2 pupils achieved their age related expectations. 5 pupils met or exceeded their FFT targets for English GPS.
Attendance: Whilst attending Whitehouse, pupil premium pupils, on average decreased their attendance rate by 0.7%, whereas their non-pupil premium peers increased their attendance rate by 5.1 %.
Sullivan Centre The Sullivan Centre is a specialist secondary unit which measures progress against how many students return to mainstream or move to special school. Approximately 25% annually return to a mainstream setting. For those who remain at the Sullivan Centre they take their GCSE's with us or follow a vocational route. All pupils which leave do so with an improved academic record and progress but more importantly a vastly improved attendance as most pupils are school phobics.
Sullivan Centre Pupil Progress and Comparisons of data (including Pupil Premium to non Pupil Premium) • There were 38 pupils attending the Sullivan Centre during the academic year. • Average attendance was 80.13% in Sullivan Centre. Expected progress measures are based upon the conversion of KS2 data to a new grade 2 (1-9). Minimum progress would be to meet the national expectation of a 'good pass' grade 5 (1-9) (3 levels progress over time KS2 - 4), better progress would be considered to be a grade 6 (1-9) equating to 4 levels progress over time (0.8 steps). • Maths average steps progress was +0.72 (expected progress is 0.6 steps minimum progress) • Reading average steps progress was +0.61 (expected progress is 0.6 steps minimum progress) • Writing average steps progress was +0.54 (expected progress is 0.6 steps minimum progress)) • 11 pupils received Pupil Premium funding and of these 2 were looked after.
Maths: Pupils attending Sullivan Centre made on average +0.72 steps progress compared to pupil premium pupils +0.81 (+0.09 steps progress). On average, pupils' made +0.24 steps progress per term in maths. Pupil premium pupils made on average +0.27 steps progress per term in maths +0.03 compared to non-pupil premium pupils.
GCSE - Maths: Out of 9 year 11 pupils, 7 were entered into their maths GCSE, 3 pupils achieved their age related expectations. 100% of pupils made progress in relation to on-entry assessments. Although O pupils met or exceeded their expectations in relation to KS2 progress over time.
Reading: Pupils attending Sullivan Centre made on average +0.61 steps progress compared to pupil premium pupils +0.72 (+0.11 steps progress). On average, pupils' made +0.20 steps progress per term in reading. Pupil premium pupils made on average +0.24 steps progress per term in reading +0.04 compared to non-pupil premium pupils.
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TRUSTEES' REPORT (CONTINUED)
GCSE - English Language: Out of 9 year 11 pupils, 7 were entered into their English GCSE, 4 pupils achieved their age related expectations. 100% of pupils made progress in relation to on-entry assessments. Although O pupils met or exceeded their expectations in relation to KS2 progress over time.
Writing: Pupils attending Sullivan Centre made on average +0.54 steps progress compared to pupil premium pupils +0.52 (-0.02 steps progress). On average, pupils made +0.18 steps progress per term in writing. Pupil premium pupils made on average +0.17 steps progress per term in writing -0.01 compared to non pupil premium pupils.
Attendance: Whilst attending Sullivan Centre, the overall average attendance rate was 80.13%. Pupil premium pupils' average attendance was 84.55% (+4.42%). Pupils increased their attendance rate by +50.78%, whereas their non-pupil premium peers increased their attendance rate by 59.42% (a difference of +8.64%).
The Boulevard Centre
Numbers on roll: There were 32 students who attended the Boulevard Centre in the 2016-17 school year (19 joined during the year). • 11 completed the whole year at Boulevard Centre; • 8 left during the school year; • 8 took maternity leave during the year; • 7 students had babies during the year; • 8 started the year having already had their babies; • 1 became pregnant during the school year; • 5 attended who had other needs; • There were 21 School Girl Mum babies accommodated in the Boulevard Centre Nursery.
Attendance Average attendance was 75%. Authorised absence was 20%. Many of our students have responsibility for the care of their child during the day and will have to remain at home if the child becomes unwell. 9 students were funded through the pupil premium. It must be appreciated that students will be absent for a period of confinement, some antenatal and postnatal appointments and if they or their child are unwell.
Exam entries 2016-2017 Total number of KS4/5 students was 17. 100% achieved at least 1 pass in any qualification. 82% were entered for 5 GCSE's or equivalent and all achieved 5 A* to G or equivalent.
Progress in maths 2016-17 29% made less than expected progress against their ELlGCSE flight paths (these cannot be based on national data but on starting points on-entry and targets derived from that according to individual needs). 14% made expected progress against flight paths. 57% made better than expected progress against flight paths.
Progress in English 8% made less than expected progress against their ELlGCSE flight paths (these cannot be based on national data but on starting points on-entry and targets derived from that according to individual needs). 92% made better than expected progress against flight paths.
Destination of leavers Of the 17 students who left at the end of the Summer term: • 7 have gane onta a Traineeship programme • 2 have become apprentices • 4 are on the study programme with us • 3 have gone to college • 1 has a job • No NEETS
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TRUSTEES' REPORT (CONTINUED)
Thorpepark Academy Attendance: 96% EYFS - outcomes: Good Level of Development 2016 - 63.8% Average Point Score improving trend 30.5 compared to 29.2 from last year. Achievement gap trend reducing from 43.2 to 40.0 against National 31.4.
Year 1 Phonics - outcomes: 76.7%, FSM pupils (79.4%) outperformed non-FSM pupils (73.1 %)
Key Stage 1 - outcomes Reading: The expected standard 75% above National 74%. FSM pupils (79.3%) outperformed non-FSM pupils (71 %)
Writing: The expected standard 66.7% above National 65%. FSM pupils (65.5%) were outperformed by non-FSM pupils (67.7%)
Maths: The expected standard 75% above National 73%. FSM pupils (72.4%) were outperformed by non-FSM pupils (77.7%)
Science: The expected standard 78.3% below National 82%. FSM pupils (82.8%) outperformed non-FSM pupils (74.2%)
RWM Combined: The expected standard 75% compared to 59.3% above National.
Key Stage 2 - outcomes Reading: The expected standard 83.1 % above National 71 %. FSM pupils (82.1 %) were outperformed by non-FSM pupils (85%)
GPS: The expected standard 79.7% above National 77%. FSM pupils (76.9%) were outperformed by non-FSM pupils (90%)
Writing: The expected standard 81.4% above National 74%. FSM pupils (65.5%) were outperformed by non-FSM pupils (67.7%)
Maths: The expected standard 84.7% above National 75%. FSM pupils (79.5%) were outperformed by non-FSM pupils (95%)
RWM Combined: The expected standard 81 % compared to above National61 %.
Progress: Thorpepark Academy is in the top 5% nationally.
Key Stage Two - Average Progress
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TRUSTEES' REPORT (CONTINUED)
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Mountbatten Primary School Attendance: 95.2% EYFS • outcomes: Good Level of Development - 70.7% Average Point Score improving trend 33.1 compared to 32.7 from last year. Achievement gap trend reducing from 42.9 to 41.7 against National 31.4.
Year 1 Phonics· outcomes: 72.7%, FSM pupils (80%) outperformed non-FSM pupils (69%) improving trend National 81 %.
Key Stage 1 • outcomes Reading: The expected standard 63.2% compared to 56.3% above National 74%. FSM pupils (38.9%) were outperformed by non-FSM pupils (85%)
Writing: The expected standard 65.8% above National 65%. FSM pupils (44.4%) were outperformed by non-FSM pupils (85%)
Maths: The expected standard 73.7% above National 73%. FSM pupils (61.1 %) were outperformed by non-FSM pupils (85%)
Science: The expected standard 68.4% below National 82%. FSM pupils (44.4%) outperformed non-FSM pupils (90%)
RWM Combined: The expected standard 63.2% compared to above National 60.3%.
Key Stage 2 • outcomes Reading: The expected standard 53.3% below National 71 %. FSM pupils (47.1 %) were outperformed by non-FSM pupils (61.5%)
GPS: The expected standard 62% below National 77%. FSM pupils (47.1 %) were outperformed by non-FSM pupils (61.5%)
Writing: The expected standard 76.7% above National 74%. FSM pupils (76.5) were outperformed by non-FSM pupils (76.9%)
Maths: The expected standard 76.7% below National 75%. FSM pupils (76.5%) outperformed non-FSM pupils (69.2%)
RWM Combined: The expected standard increased 50% below National 61 %. Key Stage Two - Average Progress
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- 14- VENN ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
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Year 1 phonics - outcomes: Phonics outcomes 81.7% above National 81 %. Non-FSM pupils (87.5%) outperformed FSM pupils (75%).
Key Stage 1 - outcomes Reading: The expected standard 61.3% compared to 70% below National 74%. Non-FSM pupils (63.4%) outperformed FSM pupils (57.1 %).
Writing: The expected standard 50% compared to 60% below National 65%. Non-FSM pupils (51.2%) outperformed FSM pupils (47.6%).
Maths: The expected standard 64.5% below National 73%. Non-FSM pupils (68.3%) outperformed FSM pupils (57.1 %).
Science: The expected standard 78.3% below National 82%. Non-FSM pupils (87.8%) outperformed FSM pupils (66.7%).
RWM Combined: The expected standard 50% below National 60.3
Key Stage 2 - outcomes Reading: The expected standard 83.9% above National 71 %. Non-FSM pupils (94.7%) outperformed FSM pupils (78.4%).
GPS: The expected standard 75% above National 77%. FSM pupils (78.4%) outperformed non-FSM pupils (94.7%).
Writing: The expected standard 71.4% below National 74%. FSM pupils (70.3%) outperformed non-FSM pupils (73.7%).
Maths: Expected Standard 69.6% below National 75%. FSM pupils (56.8%) outperformed non-FSM pupils (94.7%).
RWM Combined: Expected Standard 58.9% below National 61 %. Non-FSM pupils 73.7 above National compared to FSM pupils 46.2.
Progress: Progress is not yet secure at Griffin. Key Stage Two - Average Progress
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- 15- VENN ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
The Whitehouse pupil referral unit The Whitehouse pupil referral unit is located with Bridgeview Special School at a new purpose-built site for multiple provisions. Whitehouse offers places to pupils aged 5 to 11 who are permanently excluded or at risk of exclusion.
The main purpose being to overcome behavioural issues which causes barriers, pupils learn to take responsibility for their behaviour and to develop coping mechanisms and self-control to overcome problems. They are taught the cause and effect of behaviour types and are encouraged to work towards a return to mainstream education with renewed attitudes.
Following an initial assessment period of 6 weeks, a review is held to determine readiness for re-integration back to mainstream schools. Excluded pupils who require a new placement in mainstream education are allocated an alternative school through Hull's Fair Access Panel.
Whitehouse works in partnership with mainstream schools and maintains a continued relationship with behaviour leads in partnered schools to provide a continuous discussion on the progress of individuals.
Following the curriculum in mainstream education aims to limit the difference in learning content between placements and attendance at pupils' mainstream schools. The curriculum has a focus on basic skills and also provides an alternative curriculum to engage with particularly vulnerable pupils.
Ofsted last inspected the Whitehouse PRU in February 2013, rating the school as Outstanding in all areas.
Bridgeview Special School Bridgeview Special School is a day school for pupils with Education, Health and Care Plans (EHCP). The school provides education and support to pupils aged 5 to 11 who present with a wide range of learning difficulties and disabilities. Pupils are equipped with the life skills they will need to gain independence, benefitting from investment in additional courses such as pedestrian and safe cycling skills. Bridgeview Special School believes that offering creative access to a mainstream curriculum is key to gaining engagement from its pupil s by providing opportunities to become involved in art projects, educational excursions, cultural and sporting activities to increase participation and enjoyment in education. Access to Bridgeview Special School is via the Local Authority's Special Educational Needs department.
An Ofsted inspection rated the school as Good in July 2014.
The Sullivan Centre The Sullivan Centre is a medical pupil referral unit providing education for young people aged 11 to 16, with a flexible approach to education, providing access to learning at a range of locations to suit the pupils' ongoing needs. Based at a state-of-the-art educational site in west Hull, but also providing a home tuition service and education at the hospital classroom at Hull Royal Infirmary.
One of the key aims of the Sullivan Centre is to remove the barriers to learning which its pupils have faced, providing not only a positive point of access to education, but the outlook and stability needed for success. Following a mainstream curriculum and providing GCSE entry for those in KS4, while recognising the need to develop confidence and resilience in its students, additional courses designed to engage with young people using a holistic approach are employed.
One such course was Catlero, which is a not-for-profit organisation offering unique experiences to young people and their families. Working with CatZero, students were given the opportunity to access development training programmes, set individual and personal targets, experience situations which pushed them beyond their comfort zones; all of which developed skills and confidence in preparation for a positive and independent life ahead.
The Sullivan Centre was rated as Good by Ofsted in 2014.
- 16 - VENN ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
Thorpepark Academy Thorpepark Academy is an inclusive educational setting for children aged 2-11. The mainstream primary academy celebrates diversity and works hard to provide a well-equipped learning experience for all children and appreciates the differences that make them unique.
The academy is recognised as a support school for learning behaviour, providing support and guidance for managing low-level disruptive behaviour. Thorpepark Academy works in partnership with Bridgeview Special School and Whitehouse to deliver the 'Behaviour can change and Leading for Learning programmes'. Emphasis is placed on supporting, guiding and developing staff training in the school involved and its staff practice.
As a Venn Academy Trust partner Thorpepark Academy aims to tackle challenging behaviour during pupils' earliest years in education to provide a solid foundation for a successful approach to learning behaviour from a young age. Thorpepark Academy works in partnership with Venn to be a lead school for Team Teach training and has been awarded Big Maths School hub status with Andrell Education.
The school underwent a section 5 Ofsted in April 2014 achieving Good in all areas with the capacity to be Outstanding.
Griffin Primary School Griffin Primary School has 480 pupils on roll at the January 2017 School Census, which is considerably higher than the England average. The main electoral ward served by the school is Marfleet and the level of deprivation in the school is considerably higher than the Local Authority average, 93.5% of households are categorised within 10% of the most deprived households nationally. The percentage of pupils eligible for a free school meal (eligible for and claiming FSM at any time in the last 6 years) is 45.8% which is above both the Local Authority and England averages.
The number of pupils at the school with English as an additional language is below both Local Authority and England averages. The main languages spoken other than English are Arabic and Polish, although in total the school support 10 discrete language groups. The school's Minority Ethnic profile is below both Local Authority and England averages. The school's level of Pupil Stability is broadly in line with both Local Authority and England averages.
The total incidence of Special Educational Needs is broadly in line with the Local Authority average, but above the England average. 12.3% of pupils are categorised as needing SEN Support, which is 2.1 percentage points above the England average and 0.7 percentage points below the Local Authority average. 1.7% of pupils are categorised as having Statements, which is 2.9 percentage points above the England average and 1 percentage point above the Local Authority average. The school has 4 looked after pupils.
Mountbatten Primary School Mountbatten Primary School had 300 pupils on roll at the January 2017 School Census, which is higher than the England average. The main electoral ward served by the school is Longhill and the level of deprivation in the school is considerably higher than the LA average. 98.7% of households are categorised within 10% of the most deprived households nationally. The percentage of pupils eligible for a free school meal (eligible for and claiming FSM at any time in the last 6 years) is 39.3% which is above both the LA and England averages.
The number of pupils at the school with English as an additional language is below both LA and England averages. The main languages spoken other than English are Polish and Latvian, although in total the school supports 8 discrete language groups. The school's Minority Ethnic profile is below both LA and England averages. The school's level of Pupil Stability is below both the LA and England averages.
The total incidence of Special Educational Needs is broadly in line with the LA average, but above the England average. 11.7% of pupils are categorised as needing SEN Support, which is 2.7 percentage points above the England average and 1.3 percentage points below the LA average. 0.7% of pupils are categorised as having Statements, which is 2.1 percentage points above the England average and O percentage points below the LA average. The school has O looked after pupils.
- 17 - VENN ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
The level of absence is 4.8%, which is higher than average compared to the national figure, and higher than average locally. There is a preponderance of summer born children in year 4.
The Boulevard Centre The Boulevard Centre is an alternative provision providing support, guidance and education for pregnant and teenage mothers. All students who attend the Boulevard Centre will follow a broad and balanced curriculum, identified and organised on an individual basis, appropriate to each young woman's educational needs and academic background. Where viable, all students are expected to follow a personalised programme of study leading to accreditation in at least 5 GCSE passes (or equivalent) within one academic year. All students are expected to study English, Maths, science and ICT and to participate in teaching and learning sessions focusing on life and work related skills. Other accredited courses are also available leading to GCSE or equivalent. These include Child Care Learning and Development, Human Health & Physiology, Art, Food & Nutrition, and Statistics. In certain circumstances, students can be supported if they are completing programmes of study via their mainstream school.
Students on roll at The Boulevard Centre are dual registered, remaining on their mainstream roll, with attendance at the Unit being passed to the school on a weekly basis. At present there are 20 students on roll at the Centre.
Tidal Teaching School Tidal Teaching School is an alliance of partners from Kingston upon Hull and the East Riding. The organisation consists of secondary, primary, special schools and academies; including a pupil referral unit, higher education institutes and educational agencies. Tidal uses Educational consultants, bringing together the very best expertise to deliver quality teacher training.
Tidal views school improvement as a collaborative effort, prioritising and concentrating on the most important issues. The organisation believes success is not a solo journey - everyone involved in our training co-operates with each school to provide a feeling of inclusion. This attitude allows schools to contribute working practices to the training programme, enabling change to take place. We inspire schools to become laboratories of innovation where teachers are encouraged to reflect and share findings from their work. Tidal believes in lifelong learning, providing professional development opportunities for teaching staff at every level, from teacher training and Newly Qualified Teachers, to Executive Headships; creating pathways of development to benefit both the individual staff member and their school. The training school utilises steering groups, CPO, leadership development, the latest research and specialist leaders of education to ensure the best outcomes for all children are achieved.
Going concern The Board of Trustees has a reasonable expectation that the Academy Trust has the resources to adequately operate for the foreseeable future and maintain solvency. For this reason it continues to adopt the going concern basis in preparing financial statements. The Trust currently manages its solvency through a combination of a robust budget setting process and a regular review of the budget against actual income and expenditure for each setting. In addition, the trust and the individual academies operate with a healthy liquid cash balance and manage income and payments closely to ensure any potential risks to this are identified early. Schools or academes that join Venn Academy Trust will be required to undergo due diligence to ensure they do not diminish the Academy Trust as a going concern and add to the strengthening of Venn Academy Trust to maintain sustainability in the future.
Plans for future periods
Expansion: The strategic intention is to build a Multi-Academy Trust of no more than 15 academies over five years, with a geographical boundary of Hull, East Riding, North and North East Lincs. These academies will all be good and outstanding, or on a journey from their starting point to outstanding. Venn will have a mix of sponsored and non sponsored primary schools and free schools consisting of Special, Alternative Provision, Free School and Mainstream provision. The schools will choose to join the Trust and will work together to support and deliver high quality learning experiences for pupils. The Trust is talking to three additional settings in this academic year.
- 18 - VENN ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
Resource, capacity and expertise The Trust has appointed two key roles in the coming year, and these are Human Resources Lead and Director of School Improvement.
Having an internal HR function for the Trust will enable us to respond promptly and effectively to HR need across our schools. As a unique Trust with a real mix of complexity and provision we need to secure advice and support which thoroughly understands our requirements, can advise effectively in a timely fashion and is able to support our school leaders.
The Trust appointed a trust wide School Improvement Lead to provide quality assurance and robust accountability, supporting Academy Heads developing the SEF/SDP to secure accountability through monitoring across each academy, responsible to the Board attending Executive Leadership meetings. They will support SLTs in securing the highest standards across each academy to uphold existing outcomes and aide schools in transitioning to outstanding. Data will be scrutinised with Assessment leads to hold SLTs to account.
Venn Academy Trust will develop and be flexible in its approach to growing and widening its membership but it will be single minded in its intention to develop the highest standards for its educational offer to children and to drive continuous improvement in schools.
Principal risks and uncertainties The Trustees have assessed the major risks to which the Trust is exposed. The Academy has a Risk Register, which records and summarises the main large-scale, offensive and systematic risks to the Trust with safeguarding being the underlying principle of assessment.
Risk Management: Venn Academy Trust view risk management as an integral part of good corporate governance in order to continue to: • Manage the maintenance of high educational standards in terms of outcomes, policy and practice. • Demonstrate best value and • Protect the assets and reputation of the Trust and it's academies.
The Trust considers that key risks are most likely to arise in the following areas: Preserving and improving the delivery of high quality education to pupils attending the Trust's Academies; Safeguarding pupils, employees and all other persons to whom the Trust has a duty of care; Maintaining effective control of public funds; Protecting property including buildings, equipment, vehicles and all other assets and resources; Compliance with statutory obligations and Maintaining the positive reputation of Trust.
In order to effectively manage these risks the Trust's Board of Trustees, audit committee and Local Governing Bodies are accountable for overseeing the implementation of the Risk Management Policy and ensuring that management: • Establishes clear roles, responsibilities and reporting lines for risk management; • Provides a framework for recording and reviewing potential risks and associated actions; • Reinforces the importance of effective risk management by offering training, good practice, and other support.
The Accounting Officer is responsible for embedding the risk management culture across the Trust that encourages the identification and management of risk.
Risks identified are recorded in the Trust's Risk Register classified as Safeguarding, Strategic, Pupil Demand, Physical, Governance and Leadership, Staffing and Financial, and are graded as high, medium or low. These risks are reviewed during the period and the directors have assessed the major risks and uncertainties to which the trust is exposed.
The Academy's principal risks and uncertainties concern the future funding of education and the change to the national funding formula and funding for High Needs and the impact this will have on the Trust's finances. Three of the Trust's Academies are primarily funded through High Needs block funding and as yet the government have not decided on the future of such funding from 2018/19. However the Academies are well placed to adapt to changes in funding and demand for places generally exceeds supply.
- 19 - VENN ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
Auditor A resolution proposing that RSM UK Audit LLP be reappointed as auditor of the charitable company will be put to the members.
Statement as to disclosure of information to auditor The trustees have confirmed that, as far as they are aware, there is no relevant audit information of which the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communictated to the auditor.
The trustees' report is approved by order of the board of trustees and the strategic report (included therein) is approved by the board of trustees in their capacity as the directors at a meeting on 18 December 2017 and signed on its behalf by:
Mr T Johnson Chair of Trustees
- 20- VENN ACADEMY TRUST
GOVERNANCE STATEMENT
Scope of responsibility As trustees we acknowledge we have overall responsibility for ensuring that Venn Academy Trust has an effective and appropriate system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The board of trustees has delegated the day-to-day responsibility to the Chief Executive Principal, as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Venn Academy Trust and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.
Governance The information on governance included here supplements that described in the trustees' report and in the statement of trustees' responsibilities. The board of trustees has formally met 6 times during the year. Attendance during the year at meetings of the board of trustees was as follows:
Trustees Meetings attended Out of possible
Mr T Johnson (Chair of Trustees) 6 6 Mr V Blake-Barnard 5 6 Mr C Fenwick 4 6 Mr M McAlindon 5 6 Mr S Witham (Chief Executive Principal and Accounting Officer) 6 6 Mrs C Patton (Headteacher) 6 6 Mr P Wilson (Vice Chair) 5 6
Governance reviews A review of Governance took place in the year and at the point of signing the financial statements concluded with a report to the Trust Board. The review recommended:
o The membership of the Governing body has been strengthened to ensure that the Trust has the ability to accommodate the needs of Academies in the Trust that require additional support. o The Trust performs an annual skills audit of its governors to ensure we continue to identify and address any skills gaps. o An assessment of the structure of the Trusts' Governance structures has resulted in changing weaker academies to become "supported". The financial aspects of these Academies is now managed via a separate finance committee. This allows the academies to concentrate its resources on teaching and learning. o Further developments have seen the Trust create a pay committee to facilitate and consolidate the decisions in this area across the Trust. o The committees across the Trust have been reviewed and the Terms of References have been amended where necessary to allow a more focussed approach to Trust governance going forward. o The Trust has actively recruited onto the Board and reviewed the make-up and skills of the various sub• committees to improve Trust Governance going forward.
- 21 - VENN ACADEMY TRUST
GOVERNANCE STATEMENT (CONTINUED)
Audit sub-committee The audit committee is a sub-committee of the Trust Board and met three times during the period. The purpose of the Audit Committee is to receive reports from the external and internal auditors of the Trust and provide assurance to the Trust that adequate controls are in place to safeguard the Trust's assets and ensure regularity and propriety in transactions across the schools. The committee receives and reviews the Risk Register.
Attendance at meetings in the year was as follows:
Trustees Meetings attended Out of possible
Mr S Clark (Chair) 3 3 Mr V Blake-Barnard 3 3 Mr M McAlindon 2 3
Review of value for money As accounting officer the principal has responsibility for ensuring that the Academy Trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.
The accounting officer considers how the Academy Trust's use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the Academy Trust has delivered improved value for money during the year by: • We have made a number of key appointments across the trust including a Finance Director as well as a HR Business Partner. • The Trust has reviewed the Staffing structures to develop a Venn Senior Leadership team, putting in place Heads of School supported by Executive Leaders. • Senior Leadership has continued to work with the Venn School Improvement Team to add robust accountability • The Trust has embedded fully the Guided Reading Project to improve outcomes for pupils • We have developed Leading 4 Learning professional training to support practitioners to reduce low level disruption. This is also an income stream for the trust. • We have audited all academies to ensure best value in terms of staffing • Having set up one early years hub we have begun to set up others around the city • Through the Audit Committee we have reviewed the master policy schedule, the risk register, the preferred supplied list and the disaster recovery plans. • The Trust has conducted a review of early years and of our IT landscape to support best value • We have commissioned safeguarding and pupil premium reviews • The Trust has offered secondments to Venn staff to share best practice across the organisation • We have developed the Venn senior leadership team and CPO to impact positively on Teaching and Learning • We have shared professional development across the Trust to aid more efficient CPO.
The purpose of the system of internal control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of Academy Trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Venn Academy Trust for the period 1 September 2016 to 31 August 2017 and up to the date of approval of the annual report and financial statements.
- 22- VENN ACADEMY TRUST
GOVERNANCE STATEMENT (CONTINUED)
Capacity to handle risk The board of trustees has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy Trust's significant risks that has been in place for the period 1 September 2016 to 31 August 2017 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the board of trustees.
The risk and control framework The Academy Trust's system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular it includes:
• comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board of trustees; • regular reviews by the finance and general purposes committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes; • setting targets to measure financial and other performance; • clearly defined purchasing (asset purchase or capital investment) guidelines; • delegation of authority and segregation of duties; • identification and management of risks.
The board of trustees has considered the need for a specific internal audit function and has decided to appoint Hull City Council Internal Audit department ( who subcontract the service) as internal auditor. The internal auditor's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems. In particular the checks carried out in the current period included: • testing and review of all the Academies main financial systems and procedures to include • purchase and procurement systems • payroll systems • bank reconciliations • reviewing compliance with information on the Trust's website • review of the implementation of the teachers performance appraisal process. On an annual basis, the auditor reports to the Board of Trustees, through the audit committee on the operation of the systems of control and on the discharge of the Board of Trustees' financial responsibilities. The auditor completed their planned schedule of work which resulted in an Internal Audit Report at the end of the period identifying their findings and recommendations. The majority of recommendations were actioned during the period or shortly after the period end and there are no material control issues outstanding.
Review of effectiveness As accounting officer the Chief Executive Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:
• the work of the internal auditor; • the work of the external auditor; • the work of the audit committee; • the work of the executive managers within the Academy Trust who have responsibility for the development and maintenance of the internal control framework.
- 23- VENN ACADEMY TRUST
GOVERNANCE STATEMENT (CONTINUED)
The accounting officer has been advised of the implications of the result of their review of the system of internal control by the audit committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.
Approved by order of the board of trustees on 18 December 2017 and signed on its behalf by:
Mr T Johnson MrS Witham Chair of Trustees Chief Executive Principal and Accounting Officer
- 24- VENN ACADEMY TRUST
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
As accounting officer of Venn Academy Trust I have considered my responsibility to notify the Academy Trust board of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with ESFA terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook 2016.
I confirm that I and the Academy Trust's board of trustees are able to identify any material irregular or improper use of funds by the Academy Trust, or material non-compliance with the terms and conditions of funding under the Academy Trust's funding agreement and the Academies Financial Handbook 2016.
I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and ESFA.
Mr S Witham Accounting Officer
18December2017
- 25- VENN ACADEMY TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees, who are also the directors of Venn Academy Trust for the purposes of company law, are responsible for preparing the Trustees' Report (including the strategic report) and the financial statements in accordance with the Annual Accounts Direction issued by the Education and Skills Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of Venn Academy Trust and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
• select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP 2015 and the Academies Accounts Direction 2016 to 2017; • make judgements and accounting estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring that grants received from ESFAIDfE have been applied for the purposes intended.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by order of the members of the board of trustees on 18 December 2017 and signed on its behalf by:
Mr T Johnson Chair of Trustees
- 26- INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VENN ACADEMY TRUST
Opinion on financial statements We have audited the financial statements of Venn Academy Trust (the "academy trust") for the year ended 31 August 2017 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice), and the Academies: Accounts Direction 2016 to 2017 issued by the Education and Skills Funding Agency.
In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 August 2017 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; have been prepared in accordance with the requirements of the Companies Act 2006; and have been prepared in accordance with the Academies Accounts Direction 2016 to 2017 issued by the Education and Skills Funding Agency.
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information The other information comprises the information included in the Annual Report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees' Report and the incorporated Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Trustees' Report and the incorporated Strategic Report have been prepared in accordance with applicable legal requirements.
- 27 - INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VENN ACADEMY TRUST (CONTINUED)
Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report and the incorporated Strategic Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.
Responsibilities of trustees As explained more fully in the Statement of Trustees' Responsibilities set out on page 26, the trustees (who act as trustees for the charitable activities of the charitable company, and are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditor's report.
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we h ve formed.
Richard Lewis (Senior Statutory Auditor) For and on behalf of RSM UK Audit LLP, Statutory Auditor Chartered Accountants 1 st Floor Two Humber Quays Wellington Street West Hull .
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- 28- VENN ACADEMY TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2017
Unrestricted Restricted Restricted Total Total Funds General Fixed Asset 2017 2016 Funds Funds Notes £ £ £ £ £ Income and endowments from: Donations and capital grants 3 59,428 76,346 135,774 93,155 Donations - transfer from local authority on conversion 25 516,612 (1,206,000) 12,704,602 12,015,214 10,225,577 Charitable activities: - Funding for educational operations 4 48,329 6,699,179 6,747,508 4,900,248 Other trading activities 5 15,594 15,594 22,345 Investments 6 1,660 1,660 1,029
Total 582,195 5,552,607 12,780,948 18,915,750 15,242,354
Expenditure on: Charitable activities: - Educational operations 8 6,476,881 468,504 6,945,385 4,737,892
Total 7 6,476,881 468,504 6,945,385 4,737,892
Net income/(expenditure) 582,195 (924,274) 12,312,444 11,970,365 10,504,462
Transfers between funds (7,589) 7,589
Other recognised gains/(Iosses) Re-measurement of defined benefit obligations 23 297,000 297,000 (353,000)
Net movement in funds 582,195 (634,863) 12,320,033 12,267,365 10,151,462
Reconciliation of funds Total funds brought forward 601,243 (1,210,213) 10,760,432 10,151,462
Total funds carried forward 1,183,438 (1,845,076) 23,080,465 22,418,827 10,151,462
- 29 - Company Number 09662303 VENN ACADEMY TRUST
BALANCE SHEET AS AT 31 AUGUST 2017
2017 2016 Notes £ £ £ £ Fixed assets Tangible assets 13 23,080,465 10,760,432
Current assets Debtors 14 264,780 87,291 Cash at bank and in hand 2,649,080 1,494,673
2,913,860 1,581,964 Current liabilities Creditors: amounts falling due within one year 15 (631,498) (425,934)
Net current assets 2,282,362 1,156,030
Net assets excluding pension liability 25,362,827 11,916,462
Defined benefit pension scheme liability 23 (2,944,000) (1,765,000)
Net assets 22,418,827 10,151,462
Funds of the Academy Trust: Restricted funds 18 - Restricted fixed asset funds 23,080,465 10,760,432 - Restricted income funds 1,098,924 554,787 - Pension reserve (2,944,000) (1,765,000)
Total restricted funds 21,235,389 9,550,219
Unrestricted income funds 18 1,183,438 601,243
Total funds 22,418,827 10,151,462
The financial statements on pages 29 to 54 were approved by the board of trustees and authorised for issue on 18 December 2017 and are signed on their behalf by:
MrT Johnson Chair of Trustees
- 30- VENN ACADEMY TRUST
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2017
2017 2016 Notes £ £ £ £
Cash flows from operating activities Net cash provided by operating activities 21 643,724 1,060,983 Cash funds transferred on conversion 516,612 470,377
1,160,336 1,531,360
Cash flows from investing activities Interest from investments 1,660 1,029 Capital grants from DfE and ESFA 76,346 49,038 Purchase of tangible fixed assets (83,935) (86,754)
Net cash used in investing activities (5,929) (36,687)
Net increase in cash and cash equivalents in the reporting period 1,154,407 1,494,673
Cash and cash equivalents at beginning of the year 1,494,673
Cash and cash equivalents at end of the year 2,649,080 1,494,673
- 31 - VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2017
1 Accounting policies
General information Venn Academy Trust is a charitable company. The address of its principal place of business is given on page 1 and the nature of its operations are set out in the trustees' report.
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
Basis of preparation The financial statements of the Academy Trust have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2016 to 2017 issued by ESFA, the Charities Act 2011 and the Companies Act 2006. The Academy Trust is a public benefit entity under FRS 102 and has therefore applied the relevant public benefit requirements of FRS 102.
The financial statements are presented in sterling which is also the functional currency of the Academy Trust.
Monetary amounts in these financial statements are rounded to the nearest whole £1, except where otherwise indicated.
Going concern The Board of Trustees has a reasonable expectation that the Academy Trust has the resources to adequately operate for the foreseeable future and maintain solvency. For this reason it continues to adopt the going concern basis in preparing financial statements. The Trust currently manages its solvency through a combination of a robust budget setting process and a regular review of the budget against actual income and expenditure for each setting. In addition, the trust and the individual academies operate with a healthy liquid cash balance and manage income and payments closely to ensure any potential risks to this are identified early. Schools or academes that join Venn Academy Trust will be required to undergo due diligence to ensure they do not diminish the Academy Trust as a going concern and add to the strengthening of Venn Academy Trust to maintain sustainability in the future.
Conversion to an academy trust The conversion from a state maintained school to an academy trust involved the transfer of identifiable assets and liabilities and the operation of the school for £nil consideration. The substance of the transfer is that of a gift and it has been accounted for on that basis as set out below.
The assets and liabilities transferred on conversion from the Boulevard Centre, Griffin Primary School and Mountbatten Primary School to the Academy Trust have been valued at their fair value. The fair value has been derived based on that of equivalent items. The amounts have been recognised under the appropriate balance sheet categories, with a corresponding amount recognised in Donations - transfer from local authority on conversion in the Statement of Financial Activities and analysed under unrestricted funds, restricted general funds and restricted fixed asset funds. Further details of the transaction are set out in note 25.
Income All incoming resources are recognised when the Academy Trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
- 32 - VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
1 Accounting policies (Continued)
Grants Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the Statement of Financial Activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the Balance Sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Other grants from government agencies and other bodies are recognised in the period in which they are receivable to the extent the conditions of funding have been met. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received the income is accrued.
Donations Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income Other income, including the hire of facilities, is recognised at fair value of the consideration received or receivable in the period it is receivable and to the extent the Academy Trust has provided the goods or services.
Donated goods, facilities and services Gifts in kind, being the gift of a fixed asset, are measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust's accounting policies.
Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.
All resources expended are inclusive of irrecoverable VAT.
- 33- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
1 Accounting policies (Continued)
Expenditure on raising funds This includes all expenditure incurred by the Academy Trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Charitable activities These are costs incurred on the Academy Trust's educational operations to further its charitable aims for the benefit of the beneficiaries, including support costs and costs relating to the governance of the Academy Trust apportioned to charitable activities.
Tangible fixed assets and depreciation Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Subsequent costs are capitalised only when it is probable that such costs will generate future economic benefits. All other costs of repairs and maintenance are charged to the statement of financial activities as incurred.
Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. Where there are specific conditions attached to the funding that require the continued use of the asset, the related grants are credited to a restricted fixed asset fund in the statement of financial activities and carried forward in the balance sheet. Depreciation on the relevant assets is charged directly to the restricted fixed asset fund in the statement of financial activities. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Depreciation is provided on all tangible fixed assets other than freehold land, so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Long leasehold land Term of lease Leasehold buildings Between 30 - 51 years Freehold buildings 2% straight line Leasehold Improvements 2% straight line Computer equipment 33.33% straight line Fixtures, fittings and equipment 20% straight line Motor vehicles 25% straight line
Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.
No depreciation is provided in respect of freehold land.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.
Liabilities Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Academy Trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
- 34- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
1 Accounting policies (Continued)
Leased assets Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.
Financial instruments The Academy Trust has chosen to adopt Sections 11 and 12 of FRS 102 in full in respect of financial instruments.
Financial assets and liabilities Financial assets and financial liabilities are recognised when the Academy Trust becomes a party to the contractual provisions of the instrument.
Financial liabilities are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), unless the arrangement constitutes a financing transaction. A financial asset of financial liability that is payable or receivable in one year is measured at the undiscounted amount expected to be received or paid net of impairment, unless it is a financing transaction. If an agreement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and financial liabilities are offset only when there is a current legally enforceable right to set off the recognised amounts and the intention to either settle on a net basis, or to realise the asset and settle the liability simultaneously.
Derecognition of financial assets and liabilities A financial asset is derecognised only when the contractual rights to cash flow expire or are settled, or substantially all the risks and the rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liabi lity (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.
Taxation The Academy Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Academy Trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Pensions benefits Retirement benefits to employees of the Academy Trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'), which are multi-employer defined benefit schemes.
- 35- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
1 Accounting policies (Continued)
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the Academy Trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a projected unit method. The TPS is a multi-employer scheme but there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
The LGPS is a funded scheme and the assets are held separately from those of the Academy Trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to th e liabilities. The actuarial valuations are obtained at least triennially and are updated at each reporting date. The amounts charged to net income are the current service costs and the costs of scheme introduction s, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Fund accounting Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Academy Trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.
Restricted general funds comprise all other restricted funds received with restrictions imposed by the funder/donor and include grants from the Education and Skills Funding Agency.
- 36- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
2 Critical accounting estimates and areas of judgement
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions The Academy Trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re• assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property plant and equipment, and accounting policies above for the useful economic lives for each class of assets.
Defined benefit pension scheme The company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 23 for the disclosures relating to the defined benefit pension scheme.
The present value of the East Riding Pension Fund defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 23, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2016 has been used by the actuary in valuing the pensions liability at 31 August 2017. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
3 Donations and capital grants Unrestricted Restricted Total Total funds funds 2017 2016 £ £ £ £
Capital grants 76,346 76,346 49,038 Other donations 59,428 59,428 44,117
135,774 135,774 93,155
The income from donations and capital grants was £135,774 (2016: £93,155) of which £59,428 was restricted (2016: £44,117) and £76,346 was restricted fixed assets (2016: £49,038).
- 37- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
4 Funding for the Academy Trust's educational operations
Unrestricted Restricted Total Total funds funds 2017 2016 £ £ £ £ DfE I ESFA grants General annual grant (GAG) 4,720,036 4,720,036 2,766,680 Start up grants 50,000 50,000 140,000 Other OfE I ESFA grants 657,926 657,926 445,416
5,427,962 5,427,962 3,352,096
Other government grants Local authority grants 1,271,217 1,271,217 1,548,152
Other incoming resources 48,329 48,329
48,329 6,699,179 6,747,508 4,900,248
The income from funding for educational operations was £6,747,508 (2016: £4,900,248) of which £48,329 was unrestricted (2016: £-) and £6,699,179 was restricted (2016: £4,900,248).
5 Other trading activities Unrestricted Restricted Total Total funds funds 2017 2016 £ £ £ £
Other income 15,594 15,594 22,345
The income from other trading activities was £15,594 (2016: £22,345) of which £15,594 was unrestricted (2016: £22,345).
6 Investment income Unrestricted Restricted Total Total funds funds 2017 2016 £ £ £ £
Interest from short term deposits 1,660 1,660 1,029
The income from funding for investment income was £1,660 (2016: £1,029) of which £1,660 was unrestricted (2016: £1,029).
- 38- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
7 Expenditure Non Pay Expenditure Total Total Staff costs Premises Other 2017 2016 £ £ £ £ £
Academy's educational operations - Direct costs 4,330,968 442,658 4,773,626 3,344,049 - Allocated support costs 823,253 820,172 528,334 2,171,759 1,393,843
Total support costs 5,154,221 820,172 970,992 6,945,385 4,737,892
Net income/(expenditure) for the year includes: 2017 2016 £ £ Operating lease rentals 13,121 19,421 Depreciation of tangible fixed assets 468,504 320,030 Net interest on defined benefit pension liability 50,000 52,000 Fees payable to RSM UK Audit LLP and its associates in respect of both audit and non-audit services are as follows: - Audit 16,000 10,500 - Other services 6,500 2,500
8 Charitable activities 2017 2016 £ £ All from restricted funds: Direct costs - educational operations 4,773,626 3,344,049 Support costs - educational operations 2,171,759 1,393,843
6,945,385 4,737,892
The expenditure on educational operations was £6,945,385 (2016: £4,737,892) of which £- was unrestricted (2016 £6,000), £6,476,881 was restricted (2016: £4,411,862) and £468,504 was restricted fixed assets (2016: £320,030).
- 39- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
8 Charitable activities (Continued)
2017 2016 £ £ Analysis of support costs Support staff costs 823,253 411,546 Depreciation and amortisation 468,504 320,030 Technology costs 66,287 86,589 Premises costs 343,192 196,679 Other support costs 372,363 299,169 Governance costs 98,160 79,830
2,171,759 1,393,843
9 Staff
Staff costs Staff costs during the year were: 2017 2016 £ £
Wages and salaries 3,733,241 2,475,320 Social security costs 275,176 175,605 Operating costs of defined benefit pension schemes 902,712 472,173
Total staff costs 4,911,129 3,123,098 Supply staff costs 110,019 120,904 Staff restructuring costs 59,772 5,672 Staff development and other staff costs 73,301 99,949
5,154,221 3,349,623
Staff numbers The average number of persons employed by the Academy Trust during the year was as follows: 2017 2016 Number Number
Teachers 48 43 Administration and support 139 98 Management 4 11
191 152
- 40- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
9 Staff (Continued)
Higher paid staff The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 2017 2016 Number Number
£70,001 - £80,000 £80,000 - £90,000
Key management personnel The key management personnel of the Academy Trust comprise the trustees and the Headteacher PRU's I Special School as listed on page 1. The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the Academy Trust was £209,859 (2016: £195,909).
10 Central services
The Academy Trust has provided the following central services to its academies during the year: • Chief Executive Officer; • Financial Management; • Audit Services - internal and external; • Provision of Insurance; • Local Authority pooled budget charges; • Local Authority SSA charges for HR, Payroll and other central services; • Legal and consultancy costs re Academy Conversions.
The Academy Trust charges for the services provided was a flat 5% of income received, excluding targeted grants.
The amounts charged during the year were as follows: 2017 2016 £ £
Thorpepark Acedemy 125,785 73,354 Bridgeview Special School 45,043 25,441 Sullivan Centre 23,822 14,764 Whitehouse 46,703 26,695 Mountbatten Primary School Boulevard Centre 30,000 Griffin Primary School
271,353 140,254
- 41 - VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
11 Trustees' remuneration and expenses
During the period no trustees were paid remuneration or received other benefits from an employment with the Academy Trust. The principal and other staff trustees only received remuneration in respect of services they provided undertaking the roles of principal and staff members under their contracts of employment and not in respect of their services as trustees. Other trustees were not paid any remuneration nor received any other benefits from employment by the Academy Trust.
Mrs C Patton, the Headteacher, received remuneration of £77,538 (2016: £73,144) during the year and pension contributions paid by the Academy Trust in the period of £12,778 (2016:12,045).
Mr S Witham, the CEO, received remuneration of £88,306 (2016: £80,000) during the year and pension contributions paid by the Academy Trust in the period of £14,553 (2016: £13,184).
Related party transactions involved the Trustees are set out in note 22.
During the year ended 31 August 2017, no expenses were reimbursed to Trustees or Directors.
12 Trustees and officers insurance
In accordance with normal commercial practice, the Academy Trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy Trust business. The insurance provides cover up to £10,000,000 on anyone claim and the cost for the year ended 31 August 2016 was £10,900. During the current year, the cost of this insurance cannot be calculated as it is combined in the risk protection insurance which is calculated on a cost per pupil basis.
13 Tangible fixed assets land and leasehold Computer Fixtures, Motor Total buildings Improvements equipment fittings and vehicles equipment £ £ £ £ £ £ Cost At 1 September 2016 10,520,000 57,337 215,656 250,574 36,895 11,080,462 Transfer on conversion 12,250,000 220,899 233,703 - 12,704,602 Additions 44,331 12,494 27,110 83,935
At 31 August 2017 22,770,000 101,668 449,049 511,387 36,895 23,868,999
Depreciation At 1 September 2016 187,660 1,147 71,885 50,114 9,224 320,030 Charge for the year 275,060 2,033 110,984 71,203 9,224 468,504
At 31 August 2017 462,720 3,180 182,869 121,317 18,448 788,534
Carrying amount At 31 August 2017 22,307,280 98,488 266,180 390,070 18,447 23,080,465
At 31 August 2016 10,332,340 56,190 143,771 200,460 27,671 10,760,432
- 42- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
13 Tangible fixed assets (Continued)
Included within land and buildings of £22,307,280 is long leasehold land and buildings of £16,366,570, and freehold land and buildings of £5,940,71 O.
Where the land and buildings at Venn Academy Trust are operated from is owned by the local authority, the occupancy is made available to use under the terms of supplemental agreements. The substance of these arrangements is such that Venn Academy Trust is able to obtain future economic benefit from use of the assets. The land and buildings are therefore recognised in the balance sheet at fair value at the time of conversion.
Included within land and buildings are the following items stated at revalued amounts:
Description Effective date Value of Value of Carrying land buildings value if held £ £ under the cost model £ Thorpepark Academy 1 September 2015 115,000 3,625,000 Bridgeview Whitehouse and Sullivan 1 September 2015 Centre 740,000 5,000,000 Boulevard Centre 1 September 2016 240,000 1,680,000 Griffin Primary School 1 June 2016 1,845,000 4,120,000 Mountbatten Primary School 1 July 2017 1,480,000 2,885,000
Each of the above items have been independently valued by FHP Property Specialists using the depreciated replacement cost method.
14 Debtors 2017 2016 £ £
Trade debtors 4,570 41,649 Other debtors 55,180 39,728 Prepayments and accrued income 205,030 5,914
264,780 87,291
15 Creditors: amounts falling due within one year 2017 2016 £ £
Trade creditors 218,483 150,108 Other taxation and social security 99,763 126,613 Other creditors 107,696 149,213 Accruals and deferred income (see note 16) 205,556
631,498 425,934
- 43- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
16 Deferred income 2017 2016 £ £ Deferred income is included within: Creditors due within one year 121,238
Deferred income at 1 September 2016 Amounts deferred in the year 121,238
Deferred income at 31 August 2017 121,238
Deferred income held at 31 August 2017 included Universal Free School Meals £69k, Rates relief £3k, Sports grants £3k, Support Grant £4k, Pupil premium £2k and funds received in advance for the autumn term £40k.
17 Financial instruments 2017 2016 £ £ Carrying amount of financial assets Debt instruments measured at amortised cost 127,407 41,649
Carrying amount of financial liabilities Measured at amortised cost 410,497 299,321
- 44- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
18 Funds Balance at Gains, Balance at 1 September losses and 31 August 2016 Income Expenditure transfers 2017 £ £ £ £ £ Restricted general funds General Annual Grant 554,787 4,720,036 (4,329,927) (7,589) 937,307 Start up grants 50,000 (50,000) Other OtE / ESFA grants 657,926 (646,496) 11,430 Other government grants 1,271,217 (1,271,217) Other restricted funds 59,428 90,759 150,187 Pension reserve (1,765,000) (1,206,000) (270,000) 297,000 (2,944,000)
(1,210,213) 5,552,607 (6,476,881) 289,411 (1,845,076)
Restricted fixed asset funds Transferred on conversion 10,684,001 12,704,602 (465,464) 22,923,139 OfE / ESFA capital grants 38,715 76,346 (2,289) 112,772 Capital expenditure from GAG 37,716 (751 ) 7,589 44,554
10,760,432 12,780,948 (468,504) 7,589 23,080,465
Total restricted funds 9,550,219 18,333,555 (6,945,385) 297,000 21,235,389
Unrestricted funds General funds 601,243 582,195 1,183,438
Total funds 10,151,462 18,915,750 (6,945,385) 297,000 22,418,827
- 45- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
18 Funds (Continued)
The specific purposes for which the funds are to be applied are as follows:
(i) GAG balance carried forward is to be used for recurrent expenditure in the forthcoming period. Under the trust's Funding Agreement with the Secretary of State the Academy Trust was not subject to a limit GAG which could be carried forward at 31 August 2017.
(ii) Restricted Fixed Asset Funds relate to income received from the OtE, other government grants, transfers from GAG income and income from sponsors of individual academies prior to merger with the trust. The funds balance includes donated capital, being school buildings, fixtures and fittings, motor vehicles and computer hardware assets. The depreciation relating to the assets procured is charged against these funds over the life of the assets.
(iii) Unrestricted Funds relate to funds generated from individual schools integrating with the Academy Trust and from self-generated income by the Academy Trust's academies.
(iv) The Pension Reserve is in deficit to the value of £2,944,000 at the year end which is in excess of the unrestricted funds. The trustees will continue to monitor this situation closely.
A total of £7,589 (2016: £37,716) has been transferred from Restricted General Fund to Restricted Fixed Asset Funds in respect of capital expenditure incurred in excess of capital grants received.
- 46 - VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
18 Funds (Continued)
Funds prior year Balance at Gains, Balance at 1 September losses and 31 August 2015 Income Expenditure transfers 2016 £ £ £ £ £ Restricted general funds General Annual Grant 2,766,680 (2,174,177) (37,716) 554,787 Start up grants 140,000 (140,000) Other OfE / ESFA grants 445,416 (445,416) Other government grants 1,548,152 (1,548,152) Other restricted funds 44,117 (44,117) Pension reserve (1,352,000) (60,000) (353,000) (1,765,000)
3,592,365 (4,411,862) (390,716) (1,210,213)
Restricted fixed asset funds Transferred on conversion 10,993,708 (309,707) 10,684,001 OfE / ESFA capital grants 49,038 (10,323) 38,715 Capital expenditure from GAG 37,716 37,716
11,042,746 (320,030) 37,716 10,760,432
Total restricted funds 14,635,111 (4,731,892) (353,000) 9,550,219
Unrestricted funds General funds 607,243 (6,000) 601,243
Total funds 15,242,354 (4,737,892) (353,000) 10,151,462
- 47 - VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
18 Funds (Continued)
Total funds analysis by academy Total Total Fund balances at 31 August were allocated as follows: 2017 2016 £ £
Thorpepark Acedemy 347,732 340,218 Bridgeview Special School 435,680 375,866 Sullivan Centre 327,193 185,119 Whitehouse 307,989 158,671 Mountbatten Primary School 86,904 Boulevard Centre 25,952 Griffin Primary School 603,619 Central services 147,293 96,156
Total before fixed assets fund and pension reserve 2,282,362 1,156,030
Restricted fixed asset fund 23,080,465 10,760,432 Pension reserve (2,944,000) (1,765,000)
Total funds 22,418,827 10,151,462
Total cost analysis by academy
Expenditure incurred by each academy during the year was as follows:
Teaching and Other Educational Other costs Total Total educational support staff supplies excluding 2017 2016 support staff costs depreciation costs £ £ £ £ £ £
Thorpepark Acedemy 1,552,664 286,201 520,440 2,359,305 2,271,392 Bridgeview Special School 492,541 103,200 280,390 876,131 654,899 Sullivan Centre 299,745 1,659 2,359 303,763 402,116 Whitehouse 709,380 75,413 22,234 807,027 811,501 Mountbatten Primary School 141,229 23,692 (7,711) 157,210 Boulevard Centre 651,363 59,509 95,838 806,710 Griffin Primary School 374,178 44,120 61,043 479,341 Central services 69,477 11,674 464,698 545,849 277,954
4,290,577 605,468 1,439,291 6,335,336 4,417,862
- 48- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
19 Analysis of net assets between funds Unrestricted Restricted Restricted Total Funds General Fixed Asset Funds Funds Funds £ £ £ £ Fund balances at 31 August 2017 are represented by: Tangible fixed assets 23,080,465 23,080,465 Current assets 1,814,936 1,098,924 2,913,860 Creditors falling due within one year (631,498) (631,498) Defined benefit pension scheme liability (2,944,000) (2,944,000)
Total net assets 1,183,438 (1,845,076) 23,080,465 22,418,827
Unrestricted Restricted Restricted Total Funds General Fixed Asset Funds Funds Funds £ £ £ £ Fund balances at 31 August 2016 are represented by: Tangible fixed assets 10,760,432 10,760,432 Current assets 601,243 980,721 1,581,964 Creditors falling due within one year (425,934) (425,934) Defined benefit pension scheme liability (1,765,000) (1,765,000)
Total net assets 601,243 (1,210,213) 10,760,432 10,151,462
20 Commitments under operating leases
At 31 August 2017 the total of the academy trust's future minimum lease payments under non-cancellable operating leases was:
2017 2016 £ £
Amounts due within one year 24,121 19,060 Amounts due between one and five years 27,450 24,107
51,571 43,167
- 49- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
21 Reconciliation of net income to net cash flow from operating activities 2017 2016 £ £
Net income for the reporting period (as per the statement of financial activities) 11,970,365 10,504,462
Adjusted for: Net surplus on conversion to academy (12,015,214) (10,225,577) Capital grants from DfE/ESFA and other capital income (76,346) (49,038) Interest receivable (1,660) (1,029) Defined benefit pension scheme cost less contributions payable 220,000 8,000 Defined benefit pension scheme finance cost 50,000 52,000 Depreciation of tangible fixed assets 468,504 320,030
Movements in working capital: (Increase) in debtors (177,489) (87,291) Increase in creditors 205,564 425,934 Debtors and creditors transferred on conversion 113,492
Net cash provided by operating activities 643,724 1,060,983
22 Members' liability
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.
23 Pension and similar obligations
The Academy Trust's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff. Both are multi-employer defined benefit schemes.
The latest actuarial valuation of the TPS related to the period ended 31 March 2012, and of the LGPS 31 March 2016.
Contributions amounting to £107,696 were payable to the schemes at 31 August 2017 and are included within creditors.
Teachers' Pension Scheme
Introduction The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions 2014.
The TPS is an unfunded scheme and members contribute on a 'pay as you go' basis - these contributions along with those made by employers are credited to the Exchequer.
- 50- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
23 Pension and similar obligations (Continued)
Valuation of the Teachers' Pension Scheme The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published in June 2014.
The key elements of the valuation and subsequent consultation are: employer contribution rates set at 16.48% of pensionable pay (including a 0.08% employer administration charge (currently 14.1 %) total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £191 ,500 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £176,600 million giving a notional past service deficit of £14,900 million an employer cost cap of 10.9% of pensionable pay will be applied to future valuations the assumed real rate of return is 3.0% in excess of prices and 2.0% in excess of earnings. The rate of real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%
The TPS valuation for 2012 determined an employer rate of 16.48% (including a 0.08% administration fee), which was payable from September 2015. The next valuation of the TPS is currently underway based on March 2016 data, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 April 2019.
The employer's pension costs paid to the TPS in the period amounted to £298,889 (2016: £228,173).
A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.
The TPS is a multi-employer pension plan and there is insufficient information to account for the scheme as a defined benefit plan so it is accounted for as a defined contribution plan.
Local Government Pension Scheme
The LGPS is a funded defined benefit scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 17.3% for employers and 5.5 to 12.5% for employees.
The LGPS obligation relates to the employees of the Academy Trust who were employees transferred as part of the conversion from the maintained school (as described in note 25) together with new employees who joined the scheme in the period. The obligation in respect of employees who transferred on conversion represents their cumulative service at both the predecessor school and the Academy Trust at the balance sheet date.
Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.
- 51 - VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
23 Pension and similar obligations (Continued)
Total contributions made 2017 2016 £ £
Employer's contributions 387,000 236,000 Employees' contributions 92,000 57,000
Total contributions 479,000 293,000
Principal actuarial assumptions The following information is based upon a full actuarial valuation of the fund at 31 March 2016 updated to 31 August 2017 by a qualified independent actuary. 2017 2016 % %
Rate of increases in salaries 2.5 2.4 Rate of increase for pensions in payment/inflation 2.4 2.1 Discount rate for scheme liabilities 2.5 2.1
Scheme liabilities would have been affected by changes in assumptions as follows:
The assumed life expectations on retirement age 65 are: 2017 2016 Years Years Retiring today - Males 21.7 21.9 - Females 24.2 24.1 Retiring in 20 years - Males 23.7 24.2 - Females 26.4 26.7
The Academy Trust's share of the assets in the scheme 2017 2016 Fair value Fair value £ £
Equities 1,540,000 542,000 Bonds 281,000 80,000 Property 238,000 80,000 Other assets 109,000 22,000
Total fair value of assets 2,168,000 724,000
The actual return on scheme assets was £83,000 (2016: £88,000).
- 52- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
23 Pension and similar obligations (Continued)
Amount recognised in the statement of financial activities 2017 2016 £ £
Current service cost 607,000 244,000 Net interest cost 50,000 52,000
Total operating charge 657,000 296,000
Changes in the present value of defined benefit obligations 2017 £
At 1 September 2016 2,488,000 Obligations acquired on conversion 2,093,000 Current service cost 607,000 Interest cost 76,000 Employee contributions 92,000 Actuarial gain (240,000) Benefits paid (4,000)
At 31 August 2017 5,112,000
Changes in the fair value of the Academy Trust's share of scheme assets 2017 £
At 1 September 2016 723,000 Assets acquired on conversion 887,000 Interest income 26,000 Return on plan assets (excluding net interest on the net defined pension liability) 57,000 Employer contributions 387,000 Employee contributions 92,000 Benefits paid (4,000)
At 31 August 2017 2,168,000
24 Related party transactions
No related party transactions took place in the period of account other than certain trustees' remuneration and expenses already disclosed in note 11.
- 53- VENN ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2017
25 Conversion to an academy
The following schools converted to Academy Trust status under the Academies Act 2010 on the dates set out below.
The transfer has been accounted for as a combination that is in substance a gift. The assets and liabilities transferred were valued at their fair values and recognised in the balance sheet under the appropriate headings with a corresponding net amount recognised as a net gain in the statement of financial activities as donations - transfer from local authority on conversion.
The following table sets out the fair values of the identifiable assets and liabilities transferred and an analysis of their recognition in the statement of financial activities.
Academy Location Date of conversion Mountbatten Primary School Kingston Upon Hull 1 July 2017 Boulevard Centre Kingston Upon Hull 1 September 2016 Griffin Primary School Kingston Upon Hull 1 June 2017
2017 Net assets transferred: £
Freehold and leasehold land and buildings 12,704,602 Cash 516,612 LGPS pension deficit (1,206,000)
12,015,214
Unrestricted Restricted funds: Total Funds General Fixed asset 2017 Funds surplus/(deficit) transferred: £ £ £ £
Fixed assets funds 12,704,602 12,704,602 LA budget funds 516,612 516,612 LGPS pension funds (1,206,000) (1,206,000)
516,612 (1,206,000) 12,704,602 12,015,214
All the operations, assets and liabilities were transferred to Venn Academy Trust from the local authority listed above for £nil consideration.
- 54- INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO VENN ACADEMY TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY
Conclusion We have carried out an engagement in accordance with the terms of our engagement letter dated 13 November 2017 and further to the requirements of the Education and Skills Funding Agency ("ESFA") as included in the Academies Accounts Direction 2016 to 2017, to obtain limited assurance about whether the expenditure disbursed and income received by Venn Academy Trust during the period 1 September 2016 to 31 August 2017 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them.
In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2016 to 31 August 2017 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
Basis for conclusion The framework that has been applied is set out in the Academies Accounts Direction 2016 to 2017 Part 9: Regularity Reporting. We are independent of Venn Academy Trust in accordance with the ethical requirements that are applicable to this engagement and we have fulfilled our ethical requirements in accordance with these requirements. We believe the assurance evidence we have obtained is sufficient to provide a basis for our conclusion.
Responsibilities of Venn Academy Trust's accounting officer and trustees The accounting officer is responsible, under the requirements of Venn Academy Trust's funding agreement with the Secretary of State for Education dated 28 August 2015 and the Academies Financial Handbook, extant from 1 September 2016, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. The accounting officer is also responsible for preparing the Statement of Regularity, Propriety and Compliance. The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the proper conduct and financial operation of Venn Academy Trust and appointment of the accounting officer.
Reporting Accountant's responsibilities for reporting on regularity Our responsibilities for this engagement are established in the United Kingdom by our profession's ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2016 to 2017.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and the procedures vary in nature and timing from, and are less in extent than for a reasonable assurance engagement; consequently a limited assurance engagement does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2016 to 31 August 2017 have not been applied to purposes identified by Parliament or that the financial transactions do not conform to the authorities which govern them. INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO VENN ACADEMY TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
Our work included identification and assessment of the design and operational effectiveness of the controls, policies and procedures that have been implemented to ensure compliance with the framework of authorities including the specific requirements of the funding agreement with the Secretary of State for Education, the Academies Financial Handbook 2016 published by the Education and Skills Funding Agency and high level financial control areas where we identified a material risk of impropriety. We undertook detailed testing, on a sample basis, based on the identified areas where a material irregularity is likely to arise, or potential impropriety where such areas are in respect of controls, policies and procedures that apply to classes of transactions. Our work was undertaken with due regard to the 'Evidence to support conclusion on regularity' guidance in Academies Accounts Direction 2016 to 2017.
This work was integrated with our audit on the financial statements and evidence was also derived from the conduct of that audit to the extent it supports the regularity conclusion.
This report is made solely to Venn Academy Trust and the ESFA in accordance with the terms of our engagement letter dated 13 November 2017. Our work has been undertaken so that we might state to the Venn Academy Trust and the ESFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Venn Academy Trust and the ESFA, for our work, for this report, or for the conclusion we have formed.
RSM UK Audit LLP Chartered accountants 1 st Floor Two Humber Quays Wellington Street West Hull HU1 2BN ( Dated: ~.?.k~ Loti-